Tencent’s first profit drop since 2005 blamed on wait for Chinese regulators to approve new games

A regulatory restructuring, which has led to a months-long halt on the approval of new video games in China, highlights the big role that the central government plays in the country’s internet industry

Tencent Holdings president Martin Lau Chi-ping, left, and Pony Ma Huateng, the company’s chairman and chief executive, remain positive about the prospects of China’s video games industry, despite a regulatory restructuring that has led to a months-long delay in the approval of new games for the market. Photo: David Wong

Tencent Holdings may run the world’s biggest video games business by revenue and China’s most widely used social media platform, but the company is finding out that it too is subject to the sometimes unpredictable workings of the government.

Shenzhen-based Tencent, along with other companies in China’s gaming industry, have been forced to wait patiently on the sidelines amid a regulatory restructuring that has led to a months-long halt on government approval of new games.

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